Beverages

Distributor Consolidation

Glazer's sells beer portfolio; more to come

DALLAS -- Glazer's Wholesale, the largest wine, spirits and beer distributor in Texas, has announced that it has sold its beer portfolio to a group of seven predominantly Anheuser-Busch distributors, according to a report in specialty beer supplier Distinguished Brands International's Street Talk newsletter. The major markets involved include Dallas/Fort Worth, Houston, Austin, San Antonio, and Corpus Christi, Texas.

Glazer's is targeting a quick close of January 31, 2009, on this sale, said the report. Since the purchase of Anheuser-Busch by InBev in November, [image-nocss] A-B distributors have quickly mobilized in gaining outside specialty brands, making themselves less dependent upon a sole supplier. The sale by Glazer's has long been rumored, especially after partnering with Southern Wine & Spirits for Texas. Southern Wine & Spirits sold off it Florida beer division in late 2008.

While not commenting directly on the Glazer's deal, A-B vice president of sales Evan Athanas said he expects more consolidation among distributors in the future. "There will be consolidation. We've seen that naturally with this economy," he told CSP Daily News in December. "We have fewer wholesalers today than we had last year, and we think that trend will continue, but we don't have a formal declaration of strategy as it comes to consolidation."

Glazer's currently operates in 12 states, and is one of the nation's largest distributors of wine, spirits and malt products. The company has operations in Arizona, Arkansas, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, Oklahoma and Texas.

A-B in April was reported to be planning to change a decade-old exclusivity incentive with wholesalers in order to keep them happy and committed to its products, with some of the benefits of exclusivity that are traditionally reserved for distributors who carry only beers from A-B or its allies being bestowed upon wholesalers who carry some competing brands. The idea is to keep wholesalers in the fold, while granting leeway to sell a small amount of beer from competing sources, such as local craft breweries. The plan could be a way out from an "all-or-nothing" dilemma that arose too often for A-B's liking: should wholesalers ditch their exclusivity agreements with A-B in order to carry attractive niche beers, or stick with the company even though it blocked access to some nifty brews?

Click here for previous CSP Daily News coverage. Andclick here for an exclusive look at A-B InBev initiatives.

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Foodservice

Opportunities Abound With Limited-Time Offers

For success, complement existing menu offerings, consider product availability and trends, and more, experts say

Snacks & Candy

How Convenience Stores Can Improve Meat Snack, Jerky Sales

Innovation, creative retailers help spark growth in the snack segment

Technology/Services

C-Stores Headed in the Right Direction With Rewards Programs

Convenience operators are working to catch up to the success of loyalty programs in other industries

Trending

More from our partners